Key Takeaways
- • BBH Capital Partners Private Equity (BBHCP) announced the successful exit of its investment in The Granite Group, a diversified distributor of plumbing and HVAC products, in connection with Granite's agreement to be acquired by Watsco, Inc. (NYSE: WSO).
- • Granite, founded in 1971 and headquartered in Concord, New Hampshire, serves approximately 11,000 customers across 82 locations and offers about 29,000 SKUs sourced from more than 450 vendors.
- • Granite achieved approximately 10% compound annual sales growth since 2010 and added more than 35 net new branches during BBHCP's partnership through organic growth and acquisitions.
- • BBHCP was Granite's first outside equity partner, backing a third-generation, family-led business that now moves to Watsco.
- • Houlihan Lokey served as exclusive financial advisor and Ropes & Gray LLP as legal counsel to Granite; financial terms of the transaction were not disclosed in the source.
Summary
BBH Capital Partners Private Equity, the private equity strategy of Brown Brothers Harriman & Co. (BBH), has announced the exit of its investment in The Granite Group, according to a Business Wire release. The exit follows Granite's agreement to be acquired by Watsco, Inc. (NYSE: WSO).
Granite is a third-generation, family-led distributor of plumbing and HVAC products headquartered in Concord, New Hampshire. Founded in 1971, the company serves customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York, with approximately 11,000 customers, 82 locations, roughly 29,000 SKUs, and more than 450 vendors.
During BBHCP's partnership, Granite expanded its geographic footprint, customer base, and product offering. The company has achieved approximately 10% compound annual sales growth since 2010 and added more than 35 net new branches through a combination of organic growth and a purposeful acquisition strategy.
Brad Langer, Partner of BBH and Co-Manager of BBHCP, called Granite an exceptional family-owned business and said the sale represents an excellent outcome for the company, the Condron family, and investors. Matt Salsbury, Principal of BBH and Co-Manager of BBHCP, described BBHCP as Granite's first outside equity partner and said the firm has tremendous respect for Watsco. Granite CEO Bill Condron said BBHCP supported the company's growth strategy while helping preserve its culture and focus on its people.
Houlihan Lokey acted as exclusive financial advisor and Ropes & Gray LLP as legal counsel to Granite. BBHCP targets platform investments between $50 million and $150 million in growth-oriented middle-market businesses, with a focus on providing first institutional equity to founder-, family-, and management-owned companies.
Granite is a third-generation, family-led distributor of plumbing and HVAC products headquartered in Concord, New Hampshire. Founded in 1971, the company serves customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York, with approximately 11,000 customers, 82 locations, roughly 29,000 SKUs, and more than 450 vendors.
During BBHCP's partnership, Granite expanded its geographic footprint, customer base, and product offering. The company has achieved approximately 10% compound annual sales growth since 2010 and added more than 35 net new branches through a combination of organic growth and a purposeful acquisition strategy.
Brad Langer, Partner of BBH and Co-Manager of BBHCP, called Granite an exceptional family-owned business and said the sale represents an excellent outcome for the company, the Condron family, and investors. Matt Salsbury, Principal of BBH and Co-Manager of BBHCP, described BBHCP as Granite's first outside equity partner and said the firm has tremendous respect for Watsco. Granite CEO Bill Condron said BBHCP supported the company's growth strategy while helping preserve its culture and focus on its people.
Houlihan Lokey acted as exclusive financial advisor and Ropes & Gray LLP as legal counsel to Granite. BBHCP targets platform investments between $50 million and $150 million in growth-oriented middle-market businesses, with a focus on providing first institutional equity to founder-, family-, and management-owned companies.
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